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Exactly, Real Madrid took a wise step by extending Camavinga contract to maintain the transition in midfield, we know that Luka Modric and Toni Kroos are no longer young and are currently not playing full matches in every match. On the other hand, when Ancelotti is short of players in the left back position, Camavinga can fill that post apart from midfield, in other words, Camavinga can play in several positions and that is why Madrid really needs his energy for the long term.
With a release clause of that size, it indicates that Madrid does not want their players to be redeemed by any club. Sooner or later we will no longer see the role of Modric and Kross in the Los Blancos squad due to age, maintaining the transition by preparing Camavinga as a replacement is the right solution.
That is part of Real Madrid's plans, but it is possible that Camavinga will not get the same opportunities if Ancelotti leaves Real Madrid at the end of the season. Camavinga's contract extension will certainly benefit Real Madrid because of his young age, but I don't think Camavinga will continue to be retained if Real Madrid is coached by a different coach.
Ancelotti can make good use of Camavinga and play him in different positions, which has clearly provided advantages for the player. Camavingan's performance so far has been quite good, he has good confidence when appearing and of course that has helped Real Madrid get into their best form.